While it marked a slowdown, analysts said the data suggested the UK economy had been more resilient in the face of the ongoing Middle East conflict than feared.<\/p>\n
Yael Selfin, the chief economist at KPMG, said: \u201cConsumers have faced a series of shocks since the start of the year but have weathered them remarkably well.\u201d<\/p>\n
However, she warned the second half of the year was likely to be weaker. \u201cThe UK economy closed out the first half of the year on strong footing, but momentum is likely to fade over the coming months,\u201d she said.<\/p>\n
The news comes as the new chancellor, John Healey, prepares to present his first budget on 28 October.<\/p>\n
The ONS said services output expanded by 0.5% across the second quarter, and construction by 0.3%, while industrial production \u2013 which includes manufacturing and energy \u2013 was flat.<\/p>\n
Within the important services sector, the strongest growth was in information and communication businesses, which was up 2.7%, led by an upturn in computer programming.<\/p>\n
GDP growth in the single month of June was a better-than-expected 0.3% \u2013 City economists had forecast no growth.<\/p>\n
Sanjay Raja, the chief UK economist at Deutsche Bank, said warm weather and World Cup-related spending may have helped to buoy demand.<\/p>\n
\u201cIn short, households spent more than anticipated,\u201d he said. \u201cHotter weather saw consumers ramp up spending. The World Cup may have also had an effect in keeping June GDP on an upward trajectory with retail, hospitality, and advertising revenues all up on the month.\u201d<\/p>\n
However, economists still expect rising energy costs to dampen growth through the remainder of 2026.<\/p>\n
Oil and gas prices shot up in the wake of Donald Trump\u2019s attacks on Iran at the end of February \u2013 though consumer utility bills were protected until July by the energy price cap, which then jumped by 13%<\/a>.<\/p>\n
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